Shares in ASX 200 gold miner Saracen Mineral Holdings Limited (ASX: SAR) have had a bullish run in recent years.
The Saracen share price is up 900% in the last 5 years and closed at $4.40 per share yesterday.
That values the ASX 200 gold miner at $4.85 billion as it edges towards a 52-week high.
That's pretty good news for investors given what's going on with the Aussie share market right now.
The S&P/ASX 200 Index (ASX: XJO) has fallen 17.89% lower since the start of the year. That means the benchmark index is now down 6.63% in the last 5 years (excluding dividends).
But while the ASX 200 gold share has rocketed higher, is there still time to buy?
Why Saracen has outperformed in the last 5 years
The last 5 years have been a big period of change for the ASX 200 gold share.
In November 2019, Saracen purchased a 50% stake in the Kalgoorlie Super Pit mine. Saracen raised $796 million in equity and a further $400 million in debt to finance the hefty acquisition. Fellow ASX 200 gold share Northern Star Resources Ltd (ASX:NST) subsequently purchased the remaining 50% stake for $1.17 billion.
The purchase was a big move at the time, but has positioned Saracen for some serious growth.
The Super Pit produced 730,000 ounces of gold in FY18. For context, Saracen's FY20 guidance prior to the purchase was 350,000 to 370,000 ounces. That means the ASX 200 gold share could be set to double its previous production capacity.
The Super Pit acquisition has been a real key to the recent Saracen share price growth. However, the Aussie gold miner's shares were already climbing higher in previous years, thanks to a strong gold price and steady production increases.
But 2020 has turned out to be a whole different beast, with the coronavirus turning markets upside down in 2020 and smashing Aussie shares.
Increased volatility has been the theme throughout March and April with significant uncertainty in the current environment. That has spooked investors and sent them flocking back to 'safe haven' shares like Northern Star and Saracen.
Should you buy ASX 200 gold shares in 2020?
It's very hard to pick what will happen in the Aussie share market in 2020. However, gold would appear to be a safer option than many given the current volatility.
That being said, I've never been a big purchaser of Aussie gold miners and I'm not about to change my investing strategy in a bear market.
Despite the 900% gain in the last 5 years, I think the current environment could see ASX 200 gold shares like Saracen climb even higher in the next few months.
